AMD is dramatically taking over Intel: according to figures from a German retailer, more than 80% of the CPUs sold in the country are Ryzen 5 3600s - which leaves the i3, i5 and other i9s far away behind, around 20% market share. Intel is in the midst of a serious setback in the consumer segment. What if it's time to bounce back?
From the launch of the Ryzen, we suspected that AMD was hitting a big blow. Between 2017 and 2018, AMD's market share increased, according to available figures, by 3.8% worldwide for desktop PCs, 3.4% in the server and data center market and 5.2 % on the laptop market. However in a market in a duopoly situation on these three segments, all that AMD earns is equivalent to a loss for Intel.
Why AMD takes over Intel
For a long time, AMD found itself forced to compete with Intel on prices - because it could not compete with it on performance. Intel, for its part, could charge its more efficient processors at a high price - for lack of real direct competition. This has long allowed Intel to practice more comfortable margins and strengthen its dominant position. But everything has changed with the new architecture AMD Zen and Zen 2 from which the Ryzen are derived.
These processors now offer performance comparable to their Intel equivalents. To achieve this result, AMD has adopted a fundamentally different approach from that of its competitor. The founder chose to develop a reduced number of platforms with a modular approach, significantly less costly in research and development. And this is particularly effective, since it makes it possible to build up processor ranges simply by adding or removing identical "modules".
For the most high-end processors, in particular the EPYCs, AMD squarely juxtaposes Zen 2 hearts engraved in 7 nm on a die engraved in 14 nm. All this simplifies their manufacture, and increases the yield. However, this platform, with prices still very aggressive, began to allow AMD to nibble on its competitor's market share. This is particularly true in the consumer segment: users are more sensitive to the cost argument, while the performance of AMD chips matches that of Intel.
But that doesn't explain everything: Intel has also stumbled upon the 10nm transition. If you believe their initial calendar, 10nm should have arrived in desktop PCs several years ago - yet in 2019 they only offer a very small amount of references in this finesse of engraving. This is important, because who says finesse of engraving, says more transistors in the same space, better performance and lower energy consumption.
Opposite, AMD had no problem with its modular design, moving to 10 nm, and now to 7 nm. It must also be said that AMD is fabless, that is to say that the founder does not have his own factories. And therefore subcontracts the manufacturing of its processors, among others, to TSMC, which already masters the 7nm engraving process - while Intel must develop everything in-house. As a result, Intel has relied on 14nm since 2015, and shows only modest progress from generation to generation.
To make matters worse, Intel struggled to water the market for enough entry-level processors over the period. AMD has therefore naturally established itself as a particularly cheap and attractive alternative.
AMD would already leave Intel in Germany
It is in this context that figures from a German retailer, Mindfactory, surface. We learn that AMD processors accounted for 81% of CPU sales in September - which leaves Intel with less than 20%. In August, the same retailer already claimed to have sold 79% of AMD CPUs.
The best-selling desktop CPU in the range is said to be the Ryzen 5 3600, whose sales have surpassed those of all Intel i3, i5 and i9 processors. Of course these figures only give an idea of the situation and should be confirmed by other independent sources before being taken at face value. Recall that three quarters of the market remains occupied, all segments combined, by Intel at more than 75%.
Intel still maintains a dominant position in data centers, as well as in laptops. And in over thirty years of existence, a cash reserve has been created which can allow the cross-country skier to weather the storm. However, AMD’s strategy will not simplify Intel’s task. So how can the blue team bounce back? First, with its high-end.
the Core i9-9900KS with a new Turbo all cores up to 5 GHz. Intel is also expected in the GPU market. What do you think ? How do you think Intel can bounce back? Share your opinion in the comments.
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